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It's mental that 1/4 is is considered modest, and kinda. goes to show how disconnected The London is with most other places in the country.
I remember having a chat with a lad working the bar on a train as it passed through East London, he was saying how he used to live in Leyton (but moved up north) and has heard it is quite popular these days, he imagined houses must have gone up to something like 170k or above, he was shocked when I told him they are north of 500K these days and didn't understand how anyone could afford that. I agreed.
From the Times article linked (about another property with a 'modest budget'): The cost of installing the courtyard and rebuilding and enlarging the kitchen came in at about £250,000; this included excavating the kitchen floor to give the room increased head height.